Unfair Dismissal UK — Complete Guide 2026
In This Guide
What Is Unfair Dismissal?
Unfair dismissal occurs when your employer terminates your employment without a fair reason, or without following a fair procedure — or both. Under the Employment Rights Act 1996, employees in the UK have the right not to be unfairly dismissed.
It is important to understand that not every dismissal is unfair in the legal sense. Your employer may have had a reason to dismiss you — but if they did not follow the correct process, the dismissal can still be found to be unfair by an Employment Tribunal.
At Maison Lex, we advise employees across the UK on their rights following dismissal. Our specialist employment solicitors can assess your situation quickly and advise whether you have a viable claim.
Do You Qualify to Make an Unfair Dismissal Claim?
To bring an unfair dismissal claim in the UK, you generally need to meet the following criteria:
- You must be an employee — not self-employed or a worker
- You must have at least 2 years of continuous employment with your employer
- You must have been dismissed — this includes being made redundant, being forced to resign (constructive dismissal), or having a fixed-term contract not renewed
- Your claim must be brought within 3 months less one day of your dismissal date
There are important exceptions to the 2-year qualifying period. Certain dismissals are automatically unfair — and for these, no qualifying period applies at all. We explain these below.
What Are Fair Reasons for Dismissal?
Under UK employment law, there are five potentially fair reasons for dismissal. If your employer can demonstrate one of these reasons — and that they acted reasonably in dismissing you — a Tribunal may find the dismissal was fair.
| Reason | Examples |
|---|---|
| Capability | Poor performance, long-term sickness absence |
| Conduct | Gross misconduct, repeated misconduct after warnings |
| Redundancy | Genuine redundancy situation — role no longer needed |
| Statutory illegality | Employee can no longer legally do the job (e.g. lost driving licence) |
| Some other substantial reason (SOSR) | Business reorganisation, breakdown of trust and confidence |
Even if your employer had a fair reason, they must still follow a fair procedure. This typically means carrying out a proper investigation, holding a disciplinary or redundancy meeting, allowing you to be accompanied, and giving you the right to appeal. Failure to follow a fair procedure — even with a fair reason — can still result in a finding of unfair dismissal.
Automatically Unfair Dismissal — No 2-Year Rule
Certain dismissals are automatically unfair, regardless of how long you have worked for your employer. If you were dismissed for any of the following reasons, you can bring a claim from day one of employment:
- Pregnancy or maternity leave
- Whistleblowing — making a protected disclosure
- Asserting a statutory right (e.g. requesting holiday pay or the National Minimum Wage)
- Trade union membership or activities
- Part-time or fixed-term worker status
- Taking action on health and safety grounds
- Jury service
- Taking paternity, adoption, or shared parental leave
Constructive Dismissal — When You Are Forced to Resign
Constructive dismissal occurs when your employer’s conduct is so serious that it amounts to a fundamental breach of contract — leaving you with no real option but to resign. Common examples include:
- Being demoted without justification
- A sudden and significant cut to your pay or benefits
- Bullying, harassment, or being subjected to a hostile work environment
- Being given a completely different role without your agreement
- Being excluded from the workplace or isolated by your employer
Constructive dismissal claims can be complex. It is essential that you resign promptly after the breach — delays can suggest you accepted the change. You must also not have affirmed the breach by continuing to work normally for a prolonged period.
Our employment solicitors regularly advise employees on constructive dismissal — including how to resign in a way that protects your legal position and maximises your prospects of a successful claim.
Time Limits — You Must Act Quickly
The process works as follows:
- Contact ACAS to start Early Conciliation — this pauses the Tribunal clock
- ACAS conciliation period — up to 6 weeks to try to reach a settlement
- Submit ET1 claim form to the Employment Tribunal if conciliation fails
Do not wait. If you have been dismissed and believe it was unfair, contact Maison Lex today for an immediate assessment of your position.
How Much Compensation Can You Get?
Unfair dismissal compensation is made up of two parts:
1. Basic Award
Calculated in the same way as a statutory redundancy payment, based on:
- Your age
- Your length of service (up to 20 years)
- Your weekly gross pay (capped at £643 per week in 2026)
The maximum basic award in 2026 is £19,290.
2. Compensatory Award
This compensates you for actual financial loss — lost earnings, lost benefits, future loss of earnings, and loss of statutory rights. The compensatory award is capped at the lower of:
- £115,115 (the 2026 cap), or
- 52 weeks’ gross pay
Awards can be reduced if the Tribunal finds you contributed to your own dismissal, or if you failed to mitigate your losses by looking for new work.
How to Make an Unfair Dismissal Claim — Step by Step
- Seek legal advice immediately — contact Maison Lex for a same-day assessment
- Gather evidence — employment contract, payslips, dismissal letter, any correspondence
- Submit ACAS Early Conciliation notification — mandatory first step
- Attempt settlement via ACAS — many claims settle at this stage, often via a settlement agreement
- Submit ET1 form to the Employment Tribunal if conciliation fails
- Tribunal hearing — evidence is heard and a decision is made
Settlement Agreements and Unfair Dismissal
Many unfair dismissal claims are resolved before reaching a Tribunal — through a settlement agreement. A settlement agreement is a legally binding contract in which you agree to waive your Tribunal claims in exchange for a financial payment from your employer.
The existence of a viable unfair dismissal claim gives you significant negotiating leverage. Employers are often willing to pay a higher settlement to avoid the cost, time, and reputational risk of Tribunal proceedings.
At Maison Lex, our settlement agreement solicitors regularly negotiate enhanced packages for employees — including increased compensation, improved references, and waiver of restrictive covenants.
Have You Been Unfairly Dismissed?
Our specialist employment solicitors offer fixed-fee advice across the UK. We can assess your claim, advise on your prospects, and negotiate the best possible outcome — quickly and without unexpected costs.
Frequently Asked Questions
Can I be dismissed during a probationary period?
Yes — during a probationary period you can generally be dismissed more easily, as you will not yet have 2 years of service to bring a standard unfair dismissal claim. However, you are still protected against automatically unfair dismissal from day one — for example, if you are dismissed for whistleblowing or pregnancy.
Can I be dismissed for being off sick?
Yes, but only after a fair procedure has been followed. Your employer must obtain medical evidence, consider whether reasonable adjustments can be made (particularly if you have a disability under the Equality Act 2010), and follow a proper capability process before dismissing you for long-term sickness absence.
What is the difference between unfair dismissal and wrongful dismissal?
Unfair dismissal is a statutory right — it concerns whether your employer had a fair reason and followed a fair procedure. Wrongful dismissal is a contractual claim — it arises when your employer breaches your contract, most commonly by failing to give you your full contractual notice or pay in lieu of notice. Both can sometimes arise from the same dismissal.
Do I need a solicitor to bring an unfair dismissal claim?
You are not legally required to have a solicitor, but having specialist legal representation significantly improves your prospects of success — and the amount of compensation you receive. At Maison Lex, we offer fixed-fee employment law advice, so you always know exactly what your matter will cost.
What if I signed a settlement agreement — can I still claim?
If you have already signed a valid settlement agreement, you will generally have waived your right to bring an Employment Tribunal claim. This is why it is critical to take independent legal advice before signing. If you were pressured into signing without proper advice, contact us — the agreement may not be legally valid.
Disclaimer: This article is for general information purposes only and does not constitute legal advice. Employment law is fact-specific — you should always seek independent legal advice tailored to your circumstances. Maison Lex (Dosanjh Legal Ltd) is authorised and regulated by the Solicitors Regulation Authority (SRA No. 8013851).
